Joseph Mariathasan: The case for active in emerging markets

first_imgThis acknowledges that most dispersion between emerging market stock returns is due to country factors. It has certainly been true in the past that one characteristic of emerging market stocks was the generalisation that they were more highly correlated to their local stock market than their global sector allocation.While this tendency has grown more muted over the last couple of decades, the dispersion across emerging markets in the immediate aftermath of the US election was quite striking. Russian stocks climbed 20% between 8 November and mid-February, while Polish and Egyptian equities were up about 12% over the same period. Mexican stocks fell 12%.Are emerging markets riskier than developed? Economist and entrepreneur Jerome Booth always likes to proclaim that the difference between the two is that, in emerging markets, risk is acknowledged and discounted, while developed markets suffer from a misperception of risk.From a developed market investor point of view however, as Subramaniam points out, single-country emerging market portfolios can remain riskier than their developed market counterparts by one important measure: currency risk. MSCI finds that in many countries, over 40% of market volatility arises solely from currency effects.Yet what Subramaniam does not point out in his article is that developed markets also see tremendous volatility from similar sources. The Brexit vote caused sterling to fall almost 20% against the dollar and has every chance of falling much further. The long-term survival of the euro is also at risk with political uncertainties sweeping across Europe.While currency risk is inherent in any emerging market transaction, it is also present in a developed market transaction outside the home market. The management of this risk is primarily through diversification across the universe of emerging markets. But as the divergence between developed and emerging markets grows stronger, the rationale for having separate passive global emerging market mandates may become weaker.Subramaniam argues that the divergence in results across emerging markets suggests that, as emerging markets mature and both country and currency effects widen, institutional investors can implement more active mandates to take advantage of the differences. Provided, that is, they are willing to accept the risks.Perhaps the greater problem investors have faced in emerging markets, however, has been the volatility associated with large scale flows into and out of global emerging market exchange-traded funds, which have pushed markets both up and down. For long-term institutional investors, perhaps such volatility should be discounted – and investment decisions made on assessments of fundamental valuations rather than fund flows. That would suggest treating major emerging markets such as China and India as separate investment destinations in their own right, much as Japan has been considered for the past three or four decades.What is clearer is that passive global emerging market allocations based on a market cap weightings give institutional investors excess volatility associated with fund flows rather than fundamentals. Perhaps it is time for a more intelligent approach. MSCI in a recent note raised the issue as to whether it is time investors re-examined their approaches to investing in emerging markets.Raman Aylur Subramanian of MSCI’s equity applied research team makes the point that institutional investors face at least three choices in their allocations to emerging markets. They can allocate to an integrated, global equity approach (active or passive). They can adopt a dedicated emerging markets allocation. Or they can make active allocations to particular countries within emerging markets.There is a long-term structural change in the world which can be seen as the narrowing of the arbitrage between emerging markets and developed. There are many different manifestations of this, including the rise of the domestic consumer within emerging markets, and the increasing role of trade flows within emerging markets, compared with trade flows between emerging markets and developed.Then there is what MSCI themselves raise in Subramaniam’s article, namely the convergence of return and risk profiles between developed and emerging markets. Combined with the dispersion between countries within emerging economies, this means that some institutional investors are reconfiguring mandates to take more active views on individual countries.last_img read more

Vaalco begins Avouma workover program. Clears all debt

first_imgHouston-based Vaalco Energy has begun workover operations to restore production to two wells currently shut-in on the Avouma platform offshore Gabon.Vaalco said on Tuesday that the workover operations on the platform began on May 17, 2018.The company added that the work on the platform entailed replacing electric submersible pumps (ESPs) on the Avouma 2-H and South Tchibala 1-HB wells.The ESP on the Avouma 2-H well failed in November 2017 and the well was temporarily shut-in. Vaalco also experienced an ESP failure in a different well on the same platform, South Tchibala 1-HB, on December 24, 2017, resulting in that well also being temporarily shut-in.According to Vaalco, net production of approximately 750 net barrels of oil per day (bopd) may be restored if both workovers are successful.Cary Bounds, Vaalco CEO, said: “[…] our workover operations to restore production from two shut-in wells on the Avouma platform have commenced. We are hopeful that modifications to the design of the downhole ESP equipment, improvements in the installation procedures and upgrades to the surface control systems on the platform will result in improved operational reliability.“With the additional 750 net bopd of production that these wells could bring back online if the workover operations are successful, coupled with higher Brent pricing, we will continue to enhance our ability to generate cash in 2018.”Vaalco also said that its subsidiary paid off the outstanding balance on its amended term loan agreement with the International Finance Corporation (IFC).On March 31, 2018, debt, net of deferred financing costs, totaled $7 million. The total payoff amount for the principal and accrued interest since March 31 was approximately $7.2 million.Vaalco now has no debt on the balance sheet for the first time since June 30, 2014. The company said that it saved over $0.3 million in interest over the next year.“We are realizing significant cash flow generation due to the strong improvement in Brent oil prices with no hedges currently in place. This is allowing us to eliminate all of our outstanding debt and strengthen our balance sheet. We are improving our financial position in anticipation of a development drilling campaign on our offshore Gabon asset in 2019,” Bounds said.last_img read more

Salmonella, listeria concerns lead to nationwide recall

first_imgWashington D.C. — Envolve Foods, a Corona, Calif. establishment, is recalling approximately 292,764 pounds of ready-to-eat chicken and beef products that contain a vegetable ingredient that may be contaminated with Salmonella and Listeria monocytogenes, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.The ready-to-eat chicken and beef items were produced and packaged from Feb. 2, 2017 through Oct. 12, 2018. The following products are subject to recall: [View Labels (PDF only)]• 22-oz. plastic bags containing “simple truth, Chicken Bibimbap” and a case code number of 011110890108 on the label and use by/sell by dates of 11/2/18 through 3/12/20.• 22-oz. plastic bags containing “simple truth, Thai Style Green Curry” and a case code number of 011110816382 on the label and use by/sell by dates of 3/13/19 through 1/24/20.• 22-oz. plastic bags containing “simple truth, Chicken Tikka Masala” and a case code of 011110890092 on the label and use by/sell by dates of 3/22/19 through 4/12/19.10-lb. cases containing “CADENCE GOURMET, Steak Fajitas,” with an item number of SS00024, and an expiration dates of  11/1/2018 through 01/18/19, on the label.• 10-lb. cases containing “CADENCE GOURMET, Tuscan Tomato Basil Chicken & Sausage,” with an item number of SS00032, and an expiration dates of 10/20/18 through 01/09/19 on the label.10-lb. cases containing “CADENCE GOURMET, Rustic Toasted Tomato Basil Chicken & Vegetables,” with an item number of SS00047, and an expiration dates of 2/05/19 through 10/12/19 on the label.The products subject to recall bear establishment number “EST. 44857” inside the USDA mark of inspection. These items were shipped to distribution warehouses nationwide.The problem was discovered on October 16, 2018 when Envolve Foods received notification that the vegetables used in the production of their ready-to-eat products were being recalled by their vegetable supplier due to Salmonellaand Listeria monocytogenes concerns.There have been no confirmed reports of adverse reactions due to consumption of these products. Anyone concerned about an injury or illness should contact a healthcare provider.Consumption of food contaminated with Salmonella can cause salmonellosis, one of the most common bacterial foodborne illnesses. The most common symptoms of salmonellosis are diarrhea, abdominal cramps, and fever within 12 to 72 hours after eating the contaminated product. The illness usually lasts 4 to 7 days. Most people recover without treatment. In some persons, however, the diarrhea may be so severe that the patient needs to be hospitalized.Consumption of food contaminated with L. monocytogenes can cause listeriosis, a serious infection that primarily affects older adults, persons with weakened immune systems, and pregnant women and their newborns. Less commonly, persons outside these risk groups are affected.Listeriosis can cause fever, muscle aches, headache, stiff neck, confusion, loss of balance and convulsions sometimes preceded by diarrhea or other gastrointestinal symptoms. An invasive infection spreads beyond the gastrointestinal tract. In pregnant women, the infection can cause miscarriages, stillbirths, premature delivery or life-threatening infection of the newborn. In addition, serious and sometimes fatal infections in older adults and persons with weakened immune systems. Listeriosis is treated with antibiotics. Persons in the higher-risk categories who experience flu-like symptoms within two months after eating contaminated food should seek medical care and tell the health care provider about eating the contaminated food.FSIS is concerned that some product may be frozen and in consumers’ freezers. Consumers who have purchased these products are urged not to consume them. These products should be thrown away or returned to the place of purchase.last_img read more

Weekend I-74 crash hurts Danville man

first_imgFranklin County, In. — A report from the Franklin County Sheriff’s Department says a driver fell asleep causing a single vehicle crash on eastbound I-74 Sunday.Deputies say around 12:30 p.m. a pickup truck driven by Duane Moody, 55, of Danville, fell asleep and woke up when his pickup truck went off the north side of the roadway. Moody overcorrected causing the car to cross both eastbound lanes and rolled on the south side of the interstate.Moody was treated at Margaret Mary Health. The crash remains under investigation.last_img

Rodriguez has ruptured ACL

first_img Press Association Southampton director Les Reed said: “Jay is naturally disappointed, but is determined to get back playing for Saints as soon as possible. “Everything will be done to return him to full fitness and deliver a speedy recovery. “Jay has asked us to pass on his gratitude to everybody who has shown him their concern and sympathy during the 48-or-so hours since his injury. “Everyone at the club now wishes Jay well and we will support him, along with his family, to ensure that an international career plays a big part in his future.” The forward landed awkwardly during Saturday’s 4-1 defeat at Manchester City and Southampton confirmed he has ruptured his anterior cruciate ligament. “Southampton Football Club can confirm that, following his injury on Saturday against Manchester City, Jay Rodriguez has been diagnosed as having suffered a rupture to his anterior cruciate ligament,” a statement on the club’s official website, www.saintsfc.co.uk, said. “This will keep him out of action for six months and regrettably means he will not be fit for selection by the English national team at this summer’s FIFA World Cup in Brazil. “The 24-year-old has already been scanned and has met with a specialist knee surgeon. He will be having a routine operation shortly. “The club will post any further updates once Jay’s rehabilitation is under way.” Southampton’s statement confirmed what many had expected given the way his right knee buckled beneath him. Rodriguez looked understandably tearful as he was taken off on a stretcher, receiving a standing ovation by both sets of fans at the Etihad Stadium. Roy Hodgson witnessed the incident first hand. The England manager has now lost another player to an anterior cruciate ligament injury after Arsenal forward Theo Walcott earlier in the year. Jay Rodriguez faces six months on the sidelines after rupturing his anterior cruciate ligament, extinguishing the Southampton attacker’s hopes of going to the World Cup. The 24-year-old was in the running for a spot in England’s 23-man squad, having enjoyed a fine season with Saints in which he netted 17 goals. Such form saw Rodriguez handed his Three Lions debut in November’s friendly against Chile, but his hopes of a spot on the plane to Brazil have been cruelly taken away. last_img read more

Colombia win football gold medal at the 23rd Central American and Caribbean Games, beating Venezuela

first_imgBarranquilla (Colombia), Aug 1: Hosts Colombia have won the football gold medal at the 23rd Central American and Caribbean Games, beating Venezuela 2-1 in the final at the Romelio Martinez Stadium here.Honduras won the bronze-medal match after crushing Haiti 3-0 on Tuesday, reports EFE news agency.The hosts took the lead early in the final after a Luis Sandoval shot touched Venezuelan Jean Gutierrez for an own goal in the 11th minute.They scored again in the 32nd minute to make it 2-0 after Leonardo Castro fired home from on a free kick.However, the Venezuelans fought back with a goal four minutes later as Yohandry Orozco scored on a rebound. (IANS)last_img

District 10 take command of Track and Field and Teachers title chase

first_imgDIFFERENT year, same script – District 10 are in command of the Teachers as well as the Track and Field categories at the end of Day Four of the 59th National School Championship. At the end of 48 track and field events, defending champions, Upper Demerara/Kwakwani, sit atop the points standing with 226 points, followed by District #2 (Essequibo Coast/Pomeroon) on 163 points.East Coast Demerara (District 4) is in third place on 141 points, New Amsterdam (District 15) amassed a total of 137 points to head into today’s action in fourth place, and District #3 (West Demerara) rounded off the top five on the table with 135 points.In the Teachers Championship, District 10, the holders of the last four consecutive ‘Nationals’ title, are on top with 79 points after the completion of 16 events. District #15 are second with 59 points while Bartica (District 7), District #4 and West Coast Berbice (District #5) share the third spot with 52 points each. Cameron Nicholloyd is on his way to winning the Boys U-14 800m in record-setting time of 2:10.41.It was a record-tumbling day at the National Track and Field Centre, with over 12 records being broken, mostly in the field events, as the country’s top student-athletes didn’t disappoint the vociferous crowd at the country’s lone synthetic facility.District 10’s Jennis Benjamin erased the 1.78m Boys U-20 High Jump mark set by Okemi Porter last year, to set a new mark at 1.80m.Benjamin wasn’t satisfied with his accomplishment on the mat, and returned to the ‘blue ribbon’ event – the Boys U-20 100m – clocking 10.97 seconds. Encosie Leitch of Corentyne was second with a time of 10.98s while Osmond Gilead of New Amsterdam/Canje finished third (11.14s).Meanwhile, Deshana Skeete reset her own Girls U-18 100m record, speeding her way to win the event with a time of 12.12 seconds. Last year she clocked 12.17 seconds.Cameron Nicholloyd of the Essequibo Coast broke the Boys U-14 800m with ease, racing to a time of two minutes, 10.41 seconds (2:10.41) erasing Samuel Henry’s old time of 2:13.43 which was set last year.With the exception of Skeete’s 100m record, all the other records were recorded in the field events.last_img read more

Special teams, goaltending carry Badgers to next round

first_imgNew season, new life.With the regular season behind it, the Wisconsin women’s hockey team hosted St. Cloud State at the Eagle’s Nest, sweeping them 9-3 and 5-1, respectively, and earning a spot in the WCHA Final Face-off next weekend.While the Huskies didn’t have the most ideal regular season – winning only one game – the No. 1 Badgers expected a tough fight, especially from a team that was given new life in the playoffs.“As I mentioned in a press conference on Monday, you get into the playoffs and you start a second season,” head coach Mark Johnson said. “Everybody’s at the starting gates irrelevant of how the season went… They’re here to win, so they came out and they’re going to play hard.”Special teams shineDespite being the underdog, SCSU gave UW a physical fight with a total of 22 penalties between the two squads.With 10 power play opportunities in the series, Wisconsin capitalized on four of them, including three Friday night with five opportunities.Fielding a stronger power play, the Badgers know how important special teams play is to winning games.“They’re huge,” Johnson said. “Obviously special teams at this time of the year are crucial as you get farther along in the games. If you are going to be successful, you need your penalty kill unit working hard and your power-play unit scoring goals. That is going to help you win games.”“Extremely important,” junior forward Hilary Knight added. “We want to capitalize on every opportunity. There was a bunch of penalties called here tonight. We got a couple bounces that went our way and others that [SCSU goaltender Ashley] Nixon made a great save on.”Not only did UW have a fairly successful power play – especially Friday night – the squad was also solid on the penalty kill, allowing only one power play goal through eight chances for SCSU on the weekend.Fighting to stay alive, the Huskies started to get very physical in the third period of Saturday night’s game, sitting in the penalty box three times, while the Badgers couldn’t seem to stay disciplined with five different players in the box in a 10-minute span.“You can’t control what the refs are doing,” said sophomore forward Brianna Decker. “We had to PK a lot, especially in the third period. We thought the last two minutes was probably the longest two minutes of our lives, just sitting there on the bench, waiting for the game to end. We just had to stay on them, not give them time or space.”Rigsby eases into playoffsHeading into the third period Friday night, St. Cloud State kept things close at 4-3, just one goal behind Wisconsin.Freshman goaltender Alex Rigsby didn’t let the Huskies score another goal until there were six and a half minutes left in Saturday night’s game.In her first playoff experience, Rigsby stayed relatively solid for the Badgers. But after letting in three goals and allowing the Huskies to stay in Friday night’s game entering the third period, it seemed like her nerves may have been catching up to her.“[Rigsby’s a] young kid,” Johnson said. “It’s a rink that there’s not a lot of space behind the net. If the puck gets there, it doesn’t take much to get it out in front of the net. Pucks seemed to be bouncing the whole game. Again for her, it’s her first playoff game and it’s a learning opportunity for her.”There seemed to be a distinct difference in Rigsby’s play Saturday. She made 16 total saves that prevented the Huskies from getting any sort of momentum going.Friday night, Wisconsin outshot St. Cloud by only eight shots – one of the closest margins the squad has seen all season. But facing a total of 34 shots, Rigsby held strong, saving 30 of them.“[Friday] night, we really let our guard down and let people break in into the inside of the ice and that wasn’t her fault,” Knight said. “She’s a great player, every game growing and evolving into – hopefully – Jessie [Vetter] or whomever the top goaltender is.”last_img read more

Men’s tennis shrugs off slow start to take both matches

first_img“I think the expectation is to go to the end, to win the NCAA title,” he said. “We want to go all the way, we definitely have the potential to, but we just need to stay focused. We’ve realized it is going to be a long season and we’ve just got to take it one match at a time.” After dominating the first set, Cuckierman was able to tough out a tight second set to get a 6-0, 7-6 (2) victory. Sands closed out the day with a 6-4, 6-4 win and secured USC’s shutout of USF. The early matches saw the Trojans take on a UC Davis team that entered the day undefeated. Despite the Aggies’ previous success, the new pairing of freshman Mor Bulis and senior Jack Jaede dominated in doubles for a 6-1 victory. Junior Brandon Holt and senior Logan Smith, however, dropped their set 4-6. Freshman Jake Sands and redshirt junior Jake DeVine played the deciding set, leading the Aggies 5-2 before falling 6-7 (4) in the tiebreaker. Junior Riley Smith won both of his matches against San Francisco, contributing to the Trojans’ routine sweep of the Dons. (Emily Smith/Daily Trojan) After what could be considered a disappointing 2017-18 season where they lost in the finals of the Pac-12 tournament and the quarterfinals of the NCAA tournament, the Trojans are looking to improve their game. So far, the early returns on this season look promising, but the first real test comes this weekend when USC takes on rivals Stanford and Cal. “I’m very happy with the way this season has started, [it’s] off to a very good start,” Sands said. “But we have a long ways to go and I look forward to what is to come.” After dropping the early doubles point, USC was able to buckle down and roll right through the two teams, doing so with heavily rotated lineups due to the double header. Despite the hot start, the Trojans are not letting their 5-0 record get to their heads. center_img Redshirt senior Tanner Smith made his season debut against USF, as he paired up with Cuckierman in doubles to win 6-3. Jaede and Sands won their set 6-4. Junior Riley Smith and Bulis had the same score of 6-4 and the Trojans took the doubles point. The USC men’s tennis team’s strong start to the season continued last Friday as it dropped just one point in a double header against UC Davis and the University of San Francisco. Singles action saw Riley Smith dominate his match with a 6-0, 6-3 victory to put USC up 2-0. DeVine soon followed with a 6-2, 6-2 win of his own. After shaking off some early rust in his match, Tanner Smith clinched the fourth point for the Trojans with a 6-4, 6-4 victory. After the coaches agreed that the matches in progress all be played out, freshman Bradley Frye was the next Trojan to win with a score of 6-3, 6-3. Bulis mentioned that the team has high expectations to meet this year. Down a point going into singles, the Trojans quickly turned things around. It started with DeVine, who served up a bagel in a 6-0, 6-4 victory. Holt quickly followed suit with a pair of breadsticks in his 6-1, 6-1 victory. Jaede and Smith both piled up wins at 6-4, 6-2 and 6-0, 7-5, respectively, to give the Trojans a comeback win. Sophomore Daniel Cuckierman provided the fifth point with a 6-3, 6-3 win and Bulis clinched the sixth point with a 4-6, 6-1, 6-2 win to close out the morning matchup.last_img read more

Ndubuoke Faults NFF on Choice of Cities

first_imgIt raises doubt on fairness, equity and sincerity of purpose in the entire bidding exercise given the fact that one zone alone, out of the six geo-political zones in the country, was alloted three cities namely Benin, Uyo and Asaba while the South West was given two slots (venues) in Lagos alone.Agreed that some parts of the country may not be favourably disposed towards female participation in sports, the South East is certainly a home for women football.That such a zone was not considered by the NFF and the Bid Committee is unacceptable. That the South East which has been the nation’s feeding/recruitment ground for female footballers in the country since the commencement of the women game was suspiciously omitted in the provisional choice of cities to host the proposed FIFA Women World Cup is unfair and unjustifiable.The South East, over the years, has produced more than 70% of national team players in all tiers of the female national football teams. Same goes with clubs in the women domestic league in the country. It therefore becomes very surprising if not shocking to observe that the zone with five states and world class football stadia and solid sporting facilities was exempted in the provision of cities for the global sporting fiesta.Moreover, the South Eastern governors have shown immense commitment towards sporting excellence in the country. These are factors that should have been considered while this decision of national importance is being contemplated.Recently, Imo State governor, Emeka Ihedioha voted millions of naira for the rehabilitation of the Dan Anyiam Stadium to prove his commitment towards taking sports to the next level in the state in particular and the nation at large. Ihedioha made it clear during his campaigns before his election into office that sports will be giving a paramount place in his administration to engage our youths gainfully and take them off the streets. This will further act as catalysts to curbing crime. With less than 100 days in office, the former Deputy Speaker of the House of Representatives has lived upto his pledges, promises and campaign vows. He is fast turning Imo State into the sporting centre of the entire South East.“It is expected that these should have been considered by the bid team constituted by the NFF while coming up with its decision or choice of host cities for the proposed sporting event.“On these premises, one can only call on the NFF and its bid team/committee to do a rethink, beat a fast retreat and make a bold u-turn in this unfair decision to exempt the South East from this “developmental project”. You don’t deny the hen that lays the golden egg her honour of feeding, even if you decide not to give her more food than others!”concludes Ndubuoke.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram Former board member of the nation’s soccer governing body, NFF, Chief Fan Ndubuoke has faulted the NFF on the choice of cities chosen to host next year’s FIFA U-20 Women’s World Cup, should Nigeria get the nod of the world soccer governing body.Ndubuoke in a statement yesterday, noted that the NFF erred by ignoringcities in the South East zone, even as he called for a rethink.The statement by Ndubuoke: “The decision of the nation’s football governing body, NFF to ignore and exempt the South East among the cities selected across the geo-political zones in the country considered to host the proposed FIFA U -20 Women World Cup next year is to say the least most unfortunate, unacceptable, very questionable and above all, insensitive.last_img read more